Gov. Scott Considering Closing State-backed Insurer

By: AP
By: AP

TALLAHASSEE, Fla. (AP) -- April 25, 2011 -

WCTV will have more on the story this evening.

Gov. Rick Scott is looking at the possibility of closing the state-backed property insurance company.

With more than 1.3 million policyholders, Citizens is Florida's
largest property insurer for businesses and home owners.

Lawmakers now permit Citizens double-digit rate increases to
shore up the company's financial solvency and eliminate some
competitive disadvantages for commercial companies doing business in Florida.

The governor's office did not immediately return a phone message
for comment Monday about any plans on structuring a timeline to
abolish the state-backed insurer. The Office of Insurance
Regulation said it would not comment on Citizens' status.

A Tallahassee-based think tank, the James Madison Institute,
called on lawmakers in February to reduce Citizen's overall stake
by 60 percent over the next four years to help stabilize the
state's property insurance system.

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  • by Betsy on May 4, 2011 at 12:34 PM
    Florida homeowners insurance shouldn't be that expensive. Okay, maybe initially, but then other insurance companies will come back to compete for the money in Florida.
  • by Forced to Pay Location: Jefferson County on Apr 26, 2011 at 02:48 PM
    Since when is it socialism for a government to protect it's citizens from unethical business practices. The price that I have to pay annually for my policy in 10 years will be more than the home is worth. Hopefully, when I retire I will be able to pay this mortage off and not have to pay the insane premiums any more. The switch from Citizens to a private insurance company has increased my premium by over $700. People who have mortages do have the option of telling insurance companies that they have priced themselves out of the market; but are forced to pay whatever premiums they want to charge. Insurance companies will tell the customer anything that it takes to get the policy sold, even when they know the policy is not worth the paper it is printed on. Florida market is homeowner insurance company's dream and Florida citizen's worst nightmare.
  • by Anonymous Location: ft lauderdale on Apr 26, 2011 at 12:51 PM
    "If you invest the premium your paying and something does happen you can do alot of fixing or replaceing off your premium investment" I AGREE - but that does NOT apply to those with mortgages. It is condition of lender that there be home owner's insurance on house OR Mortgage Company can CALL THE LOAN. So PAY OFF YOUR MORTGAGE and YES do that.
  • by Lee on Apr 26, 2011 at 10:46 AM
    ny guess on how much money this clown is going to milk from Florida tax payers?
  • by Fed Up With Them All Location: Tallahassee on Apr 26, 2011 at 10:06 AM
    Good! Close it! I am tired of standing behind a state insurance company that is going to tax the living beezeezus out of me (with extra ins assessments) if there is a catastrophe. Citizens is going to bankrupt this state if there are multiple disasters. It is time for property owners in high risk areas to pay market prices for insurance that reflects the true risk of insuring their property.
  • by read your policy Location: crawfordville on Apr 26, 2011 at 06:58 AM
    Read your insurance policy. See that Hurricane emergency assessment section? It's on your homeowners AND your auto. Mine is 25% of my policy. You are already paying for Citizens and if a big storm hits, who do you think will be holding the bag? Do some research and then think about it before you jump to conclusions about the Gov's motives.
  • by Frank Location: Taylor County on Apr 26, 2011 at 04:59 AM
    I see that the 69 Mets wasn't God's last miracle. He created a walking, talking, living Moron...ah Gov. Scott.
  • by looook here he does again Location: down the street on Apr 26, 2011 at 04:16 AM
    Talked to a top realtor in my area a yr ago and pointed out that everyone in US should have flood on there policy, as even homes in the middle of US ARE FLOODING WITH NO COVERAGE AND EVEN ON THE HILL S OF KENTUCKY CANT BE WASHED AWAY BY MUD SLIDES FROM STRONG SRORMS,This just happened and the whole middle of the US is washed away with no coverage,Also the insurance companies know that flooding in the middle of the US is more damaging than on the coast as water leaves in just a few days and house are built to take the impack where inland they are not.If and when insures make flood on every house in the country, than everyone could pay much more fair amounts and the people inland wouldnt lose everything and the insures could pay with easy any and all clamns.Every home needs and must have flood as inland flood are more damanging than coastal flooding. Get slick Scott put that under his hat and stop trying to ruin everything in our state, pleading the 5th by not answering to the news to the many and all damanaging changes that the people wont except.Loooook, and get him out of there before its to late.
  • by melinda Location: jefferson county on Apr 25, 2011 at 11:03 PM
    Citizens's was literally the only insurere I could get to insure my home in Jefferson County after State Farm pulled out. Why would this stupid man want to leave me without home owner's insurance?
  • by taxpayer on Apr 25, 2011 at 05:55 PM
    Look people think about what all the homeowner insurance companys are making from the customer. If you invest the premium your paying and something does happen you can do alot of fixing or replaceing off your premium investment. Why give your money to any homeowner insurance company?
    • reply
      by gsnp on Apr 26, 2011 at 12:57 PM in reply to taxpayer
      to: TAXPAYER re: "If you invest the premium your paying" Mortgage Company will call the loan if you stop paying for insurance on your house. Good idea TAXPAYER, but only for those who have paid their mortgages on their homes OFF.
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